TEI - 10% Yielding Portfolio Investments Revealed By Broadening Market Strength
2024-06-03 17:54:18 ET
Summary
- The Magnificent 7 stocks and capitalization weighted indices like the S&P 500 and NASDAQ 100 appear to be peaking.
- Investing in smaller capitalization stocks, value stocks, international stocks, emerging market stocks, and commodity stocks offer better return profiles.
- A 25/25/25/25 portfolio allocation of cash, commodities, stocks, and bonds can provide a higher yield and more flexibility compared to a traditional 60/40 portfolio.
Generational market tops like 1929, the 1970s Nifty Fifty, and the 2000 Technology Bubble are frequently characterized by a group of leading popular stocks with parabolic charts and irrationally exuberant return expectations. In today's market, the Magnificent 7 stocks and, to a lesser degree, the capitalization weighted indices like the S&P 500 ( SPY ) and NASDAQ 100 (QQQ), appear to be peaking. While unpopular, there is great wisdom in investing in attractive value investments found in less popular sectors and asset classes where investors don't regularly traffic. Specifically, smaller capitalization stocks, value stocks, international stocks, emerging market stocks, and commodity stocks as well as commodities and money markets offer better return profiles than the Magnificent 7 or cap weighted index ETFs like the SPY and QQQ....
10% Yielding Portfolio Investments Revealed By Broadening Market Strength